Chinese government revises economic growth target

In an effort to become serious about rebalancing the economy, China is revising its economic growth target downward for the 2011-2015 timeframe. The target has been lowered from 7.5% to 7%, the country’s lowest economic target in two decades. “China’s economy is expected to continue to grow at a relatively fast rate for at least two or three decades due to great potentials in its industrialization, urbanization and globalization,” says Wan Jun, a macro-economic researcher with the China Center for International Economic Exchanges. Wan says the 2011-2015 periods could be the time period when China changes from relying on exports and investment to becoming more domestically and consumption driven. While China’s economy has steadily grown through exports and government investments in capital and energy intensive industries, the growth has come with the costs of pollution and growing disparity in individual income. According to Wan Jun, China understands the problems facing the economy and has outlined a plan to fix them. In the next five years, the government plans to prioritize growth and convert more of the GDP gains into improved human welfare to boost domestic consumption. Li Deshui, former director of the National Bureau of Standards said, “China has 800 million rural citizens and their income and consumption is relatively low. There’s the potential for China to increase consumption and domestic demand.” (March 10, 2011)